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se the option quote information shown here to answer the questions that follow. The stock is currently selling for $ 6 5 . calls puts
se the option quote information shown here to answer the questions that follow. The stock is currently selling for $
calls puts
Option Expiration Strike Price Volume Last Volume Last
RWJ March
April
July
October
a Are the call options in or out of the money?
multiple choice
In the money
Out of the money
a What is the intrinsic value of an RWJ Corporation call option?
b Are the put options in or out of the money?
multiple choice
In the money
Out of the money
b What is the intrinsic value of an RWJ Corporation put option?
c Two of the options are clearly mispriced. Which ones? You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.
check all that apply
March call
April call
October call
March put
October put
April put
c
What is the arbitrage profit you could make on each of the mispriced options? Round your answers to decimal places, eg
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